Guest Commentary: USDCAD 300-pip Shocker! Squeezing Even More Pips from a Maple Leaf!
* USDCAD provided 180 of the 200-pip ‘Shocker’ forecast last week…It now needs to prepare itself for the next sharp rally.
Dollar Canada has recovered well enough from believe the 9675 potentially corrective target area to encourage our view of at least a period of 96-1.00 consolidation highlighted in the Daily Perspective and following the so called Maple Leaf Analogy.
Indeed the rally to 9815 just short of the 23.6% retracement just about appears constructive and matches the 180 pip rally of last March. It therefore represent the first leg in a larger albeit possibly corrective rally to 99.40 the 38.2% retracement target. The A leg. It has now started the typically deep retracement/correction lower.
So although the 50% retrace of 9725 should be enough at first as 98.00-15 caps in the short term we can expect a dip just below 97 the 61.8%. Indeed a backwards target, the level needed to provide an eventual c=1.618a to 9940 suggests it could go as low as 960.
Either way we will rebuy weakness below 97 against the 9635 low for a break through 9815 to confirm and accelerate at least short term strength.
Loss of 96.35? extends to 95.70 daily trend support.
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